First of all, a problem that faced by In-N-Out Burger is negligence of the employees. The event happened on 31 July 2015 and it cause a bad reputation of In-N-Out Burger. Fred Maldonado, a customer who consumer a milkshake which was brought from In-N-Out Burger, after that, he is suffering in nausea and serve mental distress. The customer brought a burger and milkshake off the restaurant drive-thru in the evening, after ate the foods that he buy then he went back to the hotel. The next morning he only realize that the milkshake has contained a napkin and two capsules meth at the bottom of the cup. (Fox News, 2015). Methamphetamine is a stimulant of the central nervous system (CNS) that is mainly used as a general recreational drug and fewer second-line treatment of attention deficit hyperactivity disorder and obesity. Then, he went to complain to the manager but the manager just like perfunctory because he only offer Mr. Fred Maldonado a free burger and apologized. Fred Maldonado is not satisfied with the compensation and sued the company. In-N-Out Burger has denied the charges and decided to put the matter in court. (Fox News, 2015)
Furthermore, IN-N-OUT Burger has very strong competitor which is Five Guys. Five Guys is America’s favorite and most popular burger brand. Five Guys has expanded their business at a faster rate such as expand their business to 1,500 locations globally but IN-N-OUT Burger Company only expand to 330 locations. Five Guys also expands its marketing budget and footprint which is a tremendous contributor to brand equity. IN-N-OUT Burger does not expand this is a factor effect which is cost strategy of company decline. Due to the cost strategy, it had affected the sale of company. Likewise, IN-N-OUT Burger Company should keep different culture in their mind before opening the franchise in different countries. Another factor that influence IN-N-OUT Burger does not expand is failing to properly plan for their estate.
There was an issue that faced by In-N-Out Burger’s employee before at Oakland about a lawsuit alleging that Irvine-based restaurant chain of In-N-Out discriminated on the basis of race, color and age on hiring employees. The case about hiring an employee happened because of the two black men from Oakland with the age of 40 applied for the jobs at In-N-Out restaurants in Oakland and San Francisco. Regarding their race and their age, they were not hired by In-N-Out Burger although they were qualified for the jobs. They felt that it was unfair for them and alleging that they were not hired because of their age and their race (Sankin，2012). Among this case, In-N-Out Burger made a decision on saying that the companies recruit, hired and maintained a work force that was predominantly under the age of 40 and/or non-African-American. It was because In-N-Out Burger hired from the local community and reflected that the demographics of the community (East Bay Times, 2012).
Finally, In-N-Out Burger has faced a weakness which is limited and unchanged menu items. Based on (Fortune, 2018), In-N-Out Company started offering Ghirardelli hot chocolate with a pack of marshmallows to all 328 of its locations and this is the first time of the company offer the new item in 15 years. Before the hot chocolate come out, In-N-Out Burger was only added a beverage in the year 2003 and the restaurant’s menu is not the only thing that the company is expanding. If the company continued like the plan of the last few year, then it will lead to fewer return of customer because the customer only have the same products that can to purchases. Unless the company constantly innovating and updating the product offering, it will hard to incentivize the customer to return and it will limit the revenue that can make from customers.